Post Utme Skyline University 2020 Commerce Question 36

Practice objective / multiple choice question 36 from the 2020 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2020 Commerce Objective / Multiple Choice
Question 36 POST_UTME_SKYLINE_UNIVERSITY • 2020 • COMMERCE • objective

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization can lead to increased efficiency and productivity in a country's economy, using the example of Nigeria's textile industry.

Answer Options

Correct Answer A. Specialization leads to increased efficiency and productivity by allowing countries to focus on producing goods and services in which they have a comparative advantage.
B. Specialization leads to decreased efficiency and productivity by limiting the variety of goods and services produced in a country.
C. Specialization has no impact on efficiency and productivity in a country's economy.
D. Specialization leads to increased efficiency and productivity by allowing countries to produce a wider variety of goods and services.
Correct Answer
A
Correct Option:
Specialization leads to increased efficiency and productivity by allowing countries to focus on producing goods and services in which they have a comparative advantage.

About This Question

This is Post Utme Skyline University 2020 Commerce Question 36. It is one of the objective questions from the 2020 Post Utme Skyline University Commerce examination.

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